European Week of Regions and Cities puts the spotlight on Cohesion Policy and its role in supporting regions face the effects of Russia’s war on Ukraine

This article is brought to you in association with the European Commission.

Today, at the press conference launching the 21^st European Week of Regions and Cities, Commissioner for Cohesion and Reforms Elisa Ferreira and the President of the Committee of the Regions, Vasco Alves Cordeiro, came together to underline the crucial role that Cohesion Policy has been playing in mitigating the effects of the energy crisis and in providing help to those fleeing Russia’s war of aggression against Ukraine, as well as to the people and regions welcoming them.

Thanks to the Support Affordable Energy (SAFE) initiative, Member States can now support small and medium-sized businesses (SMEs) and vulnerable households to tackle rising energy prices. More than €725 million of Cohesion Policy funds has already been programmed and reprogrammed for this purpose. With plans in other Member States still materialising, the total value of SAFE measures could reach up to €4 billion.

Through the up to €17 billion Cohesion’s Action for Refugees in Europe (CARE) packages, Member States have so far reprogrammed around €1.3 billion for accommodation, healthcare, housing, employment, schooling, and medical, social, and psychological support for refugees. The flexibilities offered by CARE will continue in the 2021-2027 programming period, including advance payments of 5% for higher liquidity, and 100% EU co-financing of measures, which will facilitate the integration of third country nationals until 30 June 2024. A minimum of 30% of expenditure benefiting from these measures must be allocated to operations developed by local authorities and civil society organisations.

Examples of EU solidarity with Ukraine

• In Poland, the European Regional Development Fund (ERDF) and the Cohesion’s Action for Refugees in Europe (CARE) supported the creation of 10 separate housing units in the city of Zamość near the Polish-Ukrainian border. A building was adapted to provide suitable housing for people fleeing Ukraine (particularly women with children) following Russian aggression.
• In Germany, €15 million from the ERDF and the European Social Fund (ESF) was used for refugee support programmes in Lower Saxony. The CARE project sponsored German language courses for refugees, which helped with social integration and prepared the participants for training opportunities, studies, and work.

Examples of EU support against high energy prices for SMEs and for vulnerable households

• Slovakia has already used Cohesion Policy funding of more than €650 million to top up its national energy support scheme, supporting vulnerable households to pay their energy bills. Aspects of the scheme compensate for rising household gas prices and heat costs and include a specific energy price compensation for small electricity and gas customers.
• Bulgaria has already allocated €24.3 million of Cohesion Policy resources for SAFE measures to support vulnerable households.
• Romania has shifted funds from the ESF of more than €50 million to support households in paying their energy bills.

Citizens also think EU-funded projects have a positive impact!

The results of the new Eurobarometer survey, which the Commission published today, show that 39% of respondents have an overall awareness of EU-funded projects, an increase of 5 percentage points compared to 12 years ago. Out of those who are aware of EU-funded projects, 79% think that they have a positive impact on the regions.

Background

Cohesion Policy is the EU’s main investment policy, representing about one third of the EU budget (Multi-Annual Financial Framework). The objective of the Policy is to reduce economic, social, and territorial disparities within the EU.

During the COVID pandemic, the Coronavirus Response Investment Initiative (CRII) allowed Member States to redirect unspent 2014-2020 funds to emergency expenses, which included temporary work schemes, digital equipment for online classes, masks and other protective equipment, ventilators, and even vaccines. More than €24 billion was reprogrammed thanks to these measures.

The up to €17 billion CARE packages helped countries and regions alleviate the burden on national budgets by programming and reprogramming Cohesion Policy funds from the 2014-2020 programming period to support refugees, and the people and regions welcoming them. The flexibilities offered by CARE will continue in the 2021-2027 programming period, including advance payments of 5% for higher liquidity, and 100% EU co-financing of measures, which will facilitate the integration of third country nationals until 30 June 2024. A minimum of 30% of expenditure benefiting from these measures must be allocated to operations developed by local authorities and civil society organisations.

The SAFE initiative allows for the further redirection of unspent funds to support SMEs and vulnerable households, particularly those affected by high energy prices, and to finance short-time work schemes to keep people in jobs. Member States can use up to 10% of their Cohesion Policy allocation to face the sharp increase in energy prices.

From 9 until 12 October, Brussels will host the 21^st European Week of Regions and Cities. More than 7,000 participants will attend the event onsite, which will host more than 300 sessions and include over 1,000 speakers from across the EU and beyond. The topics of the EU Regions Week are breaking barriers to cross-border cooperation, local energy shifts for security and sustainability, promoting social innovation, regions in post-industrial transition, retaining talent for regional growth, and